Federal Reserve and Monetary Policy Overview

This collection of images and diagrams provides an in-depth look into the Federal Reserve system, its balance sheet, open market operations, impact on interest rates, investment schedule, and the role of monetary policy in shaping the economy. It covers concepts like federal funds rate, investor confidence, and expansionary monetary policy with real-world data spanning from 2000 to 2017.

• Federal Reserve
• Monetary Policy
• Balance Sheet
• Interest Rates
• Investment Schedule

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Uploaded on Mar 08, 2025 | 0 Views

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Presentation Transcript

1. Chapter 12 The Federal Reserve and Monetary Policy

2. Table 12.1 A Simplified Balance Sheet of the Federal Reserve

3. Table 12.2 An Open Market Purchase of Government Bonds by the Fed

4. Table 12.3 A Loan by ABC Bank Becomes a Deposit in XYZ Bank

5. Figure 12.1a The Market for Federal Funds

6. Figure 12.1b An Open Market Purchase Lowers the Federal Funds Rate

7. Figure 12.2 Maintaining the Federal Funds Target Rate

8. Figure 12.3 The Federal Fund and Prime Rates, 2000-2017 Source: Federal Reserve Board, Monthly data.

9. Figure 12.4 The Intended Investment Schedule

10. Figure 12.5 An Increase in Investor Confidence

11. Diagram 12.1

12. Figure 12.6 Expansionary Monetary Policy and the AE Curve

13. Figure 12.7 Monetary Policy and Investment, 2000-2017 Source: Federal Reserve and Bureau of Economic Analysis, 2017.

14. Figure 12.8 Expansionary Monetary Policy in an Environment of Pessimism

15. Figure 12.9a The Market for Government Bonds

16. Figure 12.9b The Market for Government Bonds

17. Figure 12.10 The Federal Funds and Three-Month Treasury Bill Rates, 2000-2017 Source: Federal Reserve Board, monthly data.

18. Figure 12.11 The Demand Curve for Money

19. Figure 12.12 The Supply Curve for Money

20. Figure 12.13 An Increase in the Supply of Money